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Y Your answer is partially correct. Calculate the NPV of this investment. ( Round present value factor calculations to 5 decimal places, e . g
Y Your answer is partially correct.
Calculate the NPV of this investment. Round present value factor calculations to decimal places, eg and final answer to
decimal places eg Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
NPV $
Based on this NPV amount, is the IRR higher or lower than
The IRR than X Your answer is incorrect.
Calculate the IRR for this investment. Round answer to decimal places, eg
Attempts: of used
c
X Your answer is incorrect.
Determine the simple payback period using beforetax cash flows and aftertax cash flows. Round answers to decimal
places, eg Your answer is incorrect.
Determine the discounted payback period using aftertax cash flows. Round present value factor calculations to decimal places, eg
and final answer to decimal places eg
Discounted payback period
Attempts: of used
e
Find the ARR. Round answer to decimal place, eg
ARR
Attempts: of used
f
Calculate the profitability index for this investment. Round answer to decimal places, eg
Profitability indexThe consulting company Williams Johnson & Smith W J S is in that neverending budgeting phase of the year. Realizing that they
couldn't defer a technology update any longer, the managers plan to replace all of the computers in the office. The old computers will
be sold for market value. When the new computers reach the end of their useful lives, they will be sold as well. The cost of the
combined new computers and annual software updates should be more than covered by efficiency gains and increased volume of sales
at least that's what the managers are expecting. Information related to this investment is as follows.
Determine if this investment makes sound financial sense for this company by completing the following.
Click here to view the factor table
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